wlm 12 won't accept outlook.com credentials

Running Win 7/64 with wlm 12 (avg 2015 etc)

I can access outlook.com via ie11 no probs so we know the credentials are right.

However when we sign in on wlm 12 it won't accept the credentials. On a friend's system they have no issues with the same set-up with their hotmail a/c; we copied their server settings etc, so we know those are right.

I understand that our friends at Microsoft have changed things, not just once but several times so as far as I can see their is no tutorial to resolve this issue. Primarily MS have changed the way that Outlook.com presents security settings - something about dual verification whatever that is.

I am not against improving security, but for heavens sake lets have some documentation as to how it now works. Can any one give me step by step guide to find a way through this silly maze.

many thanks

Bump

I am still having problems on win7/64 adding an outllook email address to wlm12.

I can access the account via webmail but not on wlm12. I advised that we now need two-step verification.

When I go into "webmail security" it first wants to verify me, and gives me options, phones nos, email address etc. I select the offered email address which is my non-outlook address. It is then supposed to send me a code. This never arrives, so I am stuck.

Secondly when I go into the outlook account settings/security two stage verification, I skip the options for apps, which then takes to the same (other) email address that I have, and then says a code will be sent, which again never arrives (not in spam folder either!)

Can anyone throw some light on this, as without someone at MS to speak to looks as though we need to start over.